US Secretary of State John Kerry (centre) applauds next to President Xi Jinping in Beijing as Jack Lew looks on. Photo: Reuters

President Xi Jinping has warned of disastrous consequences if China and the United States fail to contain their conflicts.

He also said the process of forming a new type of relationship between the two nations was unprecedented, and some setbacks may occur.

If we are in confrontation, it would surely spell disaster for both countries

PRESIDENT XI JINPING

Xi called on both sides to correctly judge the strategic intentions of the other when he set the tone for Sino-US ties at yesterday's opening of the annual Strategic and Economic Dialogue, which was overshadowed by a series of disagreements.

"If we are in confrontation, it would surely spell disaster for both countries and for the world," Xi said as he called on the two sides to break the old pattern of rivalry between an emerging and a developed power.

"How China and the US perceive each other's strategic intentions will have a direct bearing on the policies they adopt and the development of bilateral relations," he said. "One can ill afford a mistake on fundamental issues, a mistake that may possibly ruin the whole undertaking."

US Secretary of State John Kerry and Treasury Secretary Jacob Lew are holding talks with State Councillor Yang Jiechi and Vice-Premier Wang Yang during the two-day dialogue. Topics to be covered include North Korea's nuclear programme, reforms to the yuan's exchange rate mechanism and China's territorial disputes.

Xi said the interests of the two nations were intertwined and steps should be taken towards establishing a "new type of relationship between major countries".

Xi cast a conciliatory tone, saying the Asia-Pacific region was big enough for the two nations' presence and that it was normal for their bilateral ties to sometimes suffer setbacks.

"It is natural that China and the US may have different views, and even frictions, on certain issues," he said.

US President Barack Obama seemed to echo those views when he issued a statement saying the two nations "will not always see eye-to-eye on every issue".

Kerry also sought to address Chinese concerns, saying the US did not seek to contain China.

Shi Yinhong , a US affairs expert at Renmin University, said the remarks by the leaders of both nations indicated that "the path to building constructive strategic ties was more difficult than before" because neither side was willing to accommodate the other's views.

"The US is not convinced about China's strategic intention with China flexing its military muscle in disputed territory," Shi said. "For China, military strength is crucial to being a major power."

This article appeared in the South China Morning Post print edition as Xi warns of disaster if relations sour

China has a voice today due to the lives of thousands of American soldiers who laid down their lives to liberate Asia from the Japanese during the Second World War. I think China can gain international respect and demonstrate leadership by acknowledging this fact of history and treating the USA in good faith in return. I think newspapers can also be more responsible by avoiding this USA vs China sensationalism.

baysidedweller Jul 10th 201412:20am

"Kerry also sought to address Chinese concerns, saying the US did not seek to contain China."
they why the Asia pivot? To contain Taiwan or just for the "fun" of it?
Why Obama personally re-affirm article 5 of the US-Japan treaty while in Tokyo with the nationalistic revisionist Abe standing next to him?
These are not small potato issues but fundamental issues that concerns China.

scmpgt Jul 9th 201412:51pm

Confrontation with US is bad, but confrontation with vietnam, japan, phillipines, taiwan, hk, xinjiang, tibet is completely ok.

Be mindful of the metaphors you employ, for they shall surely limit your thinking. Countries are not tigers, and there are human beings who have wisdom, grace and courage as well as spiritual and psychological maturity. We are not slaves to nature, nor even to genetics, despite what some materialists would have us believe.
There are choices to be made. The only question is, will they be wise ones? Or will we choose the path of destructive nationalism? Can some people here see hat they are the products of ideology which sets their minds against "the other", dehumanising them?

How About Jul 10th 20143:31pm

Well observed pslhk.
.
Xi only needs to remind SOS to keep a leash on himself one on Hagel and the hawkes, and tell Lew to start repaying all interest yields in euro or RMB, or China'd scale back 250B in treasuries every year, the Zonkey will then be begging to come and kowtow to Zhongnanhai.
.

pslhk Jul 10th 20148:32am

US' final position has been irrevocably decided and communicated to China
therefore Obama is absent in the annual bilateral meeting
sending operatives to maneuver rooms within parameters
-
Christian half Kenyan, Hussein Obama emulates T Roosevelt
who believed “that our future history will be more determined by our position
on the Pacific facing China than by our position on the Atlantic facing Europe”
-
He also sees eye to eye with T Roosevelt about Japan
that “the J aps (R’s own word) have played our game …
We may be in genuine service … in preventing interference
to rob her of the fruits of her victory”
This is the US position regarding Liuchiu (Ryukyu) and Diaoyu
-
Japanese Baron, Kentaro Kaneko’s remark
aptly explains Japan’s re-militarization
“The nations believing in the right have been crushed
and trampled on … as in the English opium war
and (how the Triple Intervention made Japan cough up spoils)
in the war with China.
We have to become mighty to preserve the right”
-
Jacob Lew is to ensure continued Chinese funding
The deal is: China to allow time for US economy to recover
US will rein in Japan from provoking China
into a war before she is fully prepared
-
With economic recovery and Japan becoming militarily capable
to administer US' Japanese Monroe Doctrine for Asia
we'll see how the next US president may play the game

jiawang@****** Jul 10th 20148:09am

The US/Japan alliance aims to stop China's expansion/development.
They will not stop.
Yes, there will be "disastrous consequences."
The question that should be asked is what happens after the "disastrous consequences"?

tomdoteli@****** Jul 10th 20147:49am

It is hardly inspiring for Americans to hear so many Chinese say that Russia and China have joint military cooperation because this is the only way they can succeed against the USA. It is also disturbing to hear evidence that this has been part of their long-term planning for many decades now. So recent American maneuvers cannot be held responsible for Russian and Chinese planning which started decades ago. While no country is perfect, Russia appears less perfect than most. Who would want world-dominance of such a country? Peace treaties or non-aggression pacts appear to mean nothing to leaders like Putin. They are used as windows of opportunity to build up strategies for further aggression and infiltration. Deception again and again and no interest in keeping his word. So by all means, the USA should prepare for war to ensure peace.

A Kuro Jul 10th 20148:00pm

Not to worry, if the US can't get China to play ball, they will just go to Tokyo where their war mongering dirty rabid dog comfort women are waiting to sooth over any ruffled feathers they US oligarchs suffered in their encounter with the stubborn Chinese in Beijing.